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1. Suppose the Price of a new machine is $10,000. Further suppose that the ENR P= $13,000. What is the expected rate of profit on
1. Suppose the Price of a new machine is $10,000. Further suppose that the ENR P= $13,000. What is the expected rate of profit on this investment? 2. What is the expected rate of prot if The government provides an ITC of 10%. 6,000 6,000 5,000 8,000 7,000 Year 1 2 3 4 5 Price = $30,000 r > 0 ITC = 0Gross Domestic Product Consumption $100 $120 200 180 300 240 400 300 500 360 Expected Rate of Return Amount of Investment 25% $0 20 20 15 40 10 60 5 80
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